Tanzania Grain Board to spend US$8.7 M on construction of processing and milling plants

TANZANIA—Tanzania’s Cereals and Other Products Board (CPB) is set to invest US$ 8.7 million to construct three new maize flour and paddy processing and milling plants with the aim of strengthening its competitiveness and exploring the emerging trade opportunities in the East Africa region.

The first facility is a maize-cassava composite flour processing plant to be set up in the city of Mwanza, with a value of US$2.1 million upon completion and an estimated daily production of 125 tons of flour mixtures made from maize and cassava.

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The second plant is a paddy milling factory set to be constructed in Keyla district Mbeya region, with an expected daily production capacity of 96 tons of rice. The third factory will be installed in the town of Mzizma, is expected to have a processing capacity of 100 tons of maize flour per day.

The funds should also enable the CPB to install new warehouses and silos in order to increase its grain storage capacity to 600,000 tonnes, compared to the current 120,000 tonnes.

Tanzania is the leading producer of maize and rice in East Africa and cereals occupy a crucial place in human nutrition in the country.

Tanzania’s MY2022/23 corn production is forecast to decrease by approximately 16 percent to 5.9 million metric tons (MMT) due to drought conditions, fall armyworm infestations, and high fertilizer prices.

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Rice and wheat imports will continue to rise in MY2022/23 to 1.23 MMT and 250,000 metric tons (MT), respectively to offset domestic production declines and satisfy rising food demand.

The government spends US$ 557.4 million annually to import wheat, sugar, maize seeds and crude oil due to lackluster domestic production of the vital cash crops.

During the current financial year, CPB is set to address shortage of barley seeds by importing an estimated 5,000 tons of seeds to enable farmers to fully engage in production. The government has also earmarked a total of 400,000 hectares of land for cultivation of wheat, a move aimed at ending shortage of the crop in the country.

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